eHealthInsurance.com Investor Relations – News Release

Revenue for the second quarter of 2018 was $32.7 million, a 6%
decrease compared to $34.6 million for the second quarter of 2017.

GAAP net loss for the second quarter of 2018 was $12.0 million
compared to net loss of $1.5 million for the second quarter of 2017.

Adjusted EBITDA was $(10.1) million for the second quarter of 2018
compared to $(6.9) million for the second quarter of 2017.

Net cash used in operations for the second quarter of 2018 was $0.3
million compared to $1.0 million for the second quarter of 2017.

Effective January 1, 2018, eHealth adopted Accounting Standards Update
2014-09, Revenue from Contracts with Customers (ASC 606), using
the full retrospective method. Prior period information presented has
been adjusted to reflect the adoption of this new revenue recognition
standard.

Scott Flanders, chief executive officer of eHealth stated, “During the
second quarter, we made significant progress in preparing our Medicare
organization for what we believe will be the strongest Medicare selling
season in eHealth’s history. We also successfully captured growth
opportunities in the small group market and the non-ACA segment of the
Individual market. I believe that we are now in a strong position to
achieve our Medicare enrollment volume goals and overall financial
guidance for the year.”

GAAP — Second Quarter of 2018 Results

Revenue — Revenue for the second quarter of 2018 totaled $32.7
million, a 6% decrease compared to $34.6 million for the second quarter
of 2017. Commission revenue for the second quarter of 2018 totaled $30.6
million, a 6% decrease compared to $32.5 million for the second quarter
of 2017. Other revenue for the second quarter of 2018 was $2.0 million,
a 5% decrease compared to $2.1 million for the second quarter of 2017.

Revenue from the Medicare segment was $25.5 million for the second
quarter of 2018, a 5% increase compared to $24.2 million for the second
quarter of 2017. Revenue from the Individual, Family and Small Business
segment was $7.2 million for the second quarter of 2018, a 31% decrease
compared to $10.4 million for the second quarter of 2017.

Loss from Operations — Loss from operations for the second
quarter of 2018 was $16.9 million compared to loss from operations of
$10.5 million for the second quarter of 2017.

Pre-tax Loss — Pre-tax loss for the second quarter of 2018 was
$16.6 million compared to pre-tax loss of $10.2 million for the second
quarter of 2017.

Benefit from Income Taxes — Benefit from income taxes for the
second quarter of 2018 was $4.6 million compared to benefit from income
taxes of $8.7 million for the second quarter of 2017.

Net Loss — Net loss for the second quarter of 2018 was $12.0
million, or $0.63 net loss per diluted share, compared to net loss of
$1.5 million, or $0.08 net loss per diluted share, for the second
quarter of 2017.

Segment Profit (Loss)— Loss from our Medicare segment was
$1.5 million for the second quarter of 2018 compared to loss of $2.0
million for the second quarter of 2017. Loss from our Individual, Family
and Small Business segment was $0.6 million for the second quarter of
2018 compared to profit of $2.1 million for the second quarter of 2017.

Non-GAAP — Second Quarter of 2018 Results

Non-GAAP Operating Loss & Non-GAAP Net Income (Loss) — Non-GAAP
operating loss for the second quarter of 2018 was $10.7 million compared
to non-GAAP operating loss of $7.6 million for the second quarter of
2017. Non-GAAP net loss for the second quarter of 2018 was $7.5 million,
or $0.40 net loss per diluted share, compared to non-GAAP net income of
$0.2 million, or $0.01 net income per diluted share, for the second
quarter of 2017.

Non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per
diluted share for the second quarter of 2018 excludes $3.1 million of
stock-based compensation expense, $2.5 million expense for change in
fair value of earnout liability related to our acquisition of GoMedigap
and $0.5 million of amortization of intangible assets. Non-GAAP net loss
and non-GAAP net loss per diluted share for the second quarter of 2018
also exclude $1.7 million of benefit from income tax effect of these
adjustments. Non-GAAP operating loss, non-GAAP net income and non-GAAP
net income per diluted share for the second quarter of 2017 excludes
$2.6 million of stock-based compensation expense and $0.3 million of
amortization of intangible assets. Non-GAAP net income and non-GAAP net
income per diluted share for the second quarter of 2017 also exclude
$1.2 million of benefit from income tax effect of these adjustments.

Adjusted EBITDA — Adjusted EBITDA was $(10.1) million for the
second quarter of 2018 compared to $(6.9) million for the second quarter
of 2017. Adjusted EBITDA is calculated by adding stock-based
compensation, change in fair value of earnout liability related to our
acquisition of GoMedigap, depreciation and amortization expense,
acquisition costs, restructuring charges, amortization of intangible
assets, net other income (expense), and benefit from income taxes to
GAAP net loss.

Membership & Submitted Applications

Submitted Applications — Submitted applications for all Medicare
products, which includes Medicare Advantage, Medicare Supplement and
Prescription Drug Plans were 33,756 applications in the second quarter
of 2018, an 8% increase compared to 31,166 applications in the second
quarter of 2017. Submitted applications for individual and family plan
products decreased 57% in the second quarter of 2018 to 2,346
applications compared to 5,425 applications in the second quarter of
2017.

Approved Members — Approved members for all Medicare products,
which includes Medicare Advantage, Medicare Supplement and Prescription
Drug Plans were 29,502 in the second quarter of 2018, a 1% increase
compared to 29,235 applications in the second quarter of 2017. Approved
members for individual and family plan products decreased 67% in the
second quarter of 2018 to 2,489 members compared to 7,647 members in the
second quarter of 2017.

Membership — Total estimated membership as of June 30, 2018 was
877,716 members, a 1% decrease from 885,802 estimated members we
reported as of June 30, 2017. Estimated Medicare membership as of
June 30, 2018 was 393,937, a 31% increase compared to 300,373 estimated
members we reported as of June 30, 2017. Estimated individual and family
plan membership as of June 30, 2018 was 168,278 members, a 31% decrease
compared to 244,897 estimated members we reported as of June 30, 2017.

Cash — Second Quarter of 2018

Cash Flows — Net cash used in operating activities was $0.3
million for the second quarter of 2018 compared to net cash used in
operating activities of $1.0 million for the second quarter of 2017.

GAAP — Year-to-Date Results

Revenue — Revenue for the six months ended June 30, 2018 totaled
$75.7 million, a 1% decrease compared to $76.1 million for the six
months ended June 30, 2017. Commission revenue for the six months ended
June 30, 2018 totaled $71.4 million, a 0.1% increase compared to $71.3
million for the six months ended June 30, 2017. Other revenue for the
six months ended June 30, 2018 was $4.4 million, a 10% decrease compared
to $4.8 million for the six months ended June 30, 2017.

Revenue from the Medicare segment was $56.2 million for the six months
ended June 30, 2018, a 13% increase compared to $49.6 million for the
six months ended June 30, 2017. Revenue from the Individual, Family and
Small Business segment was $19.5 million for the six months ended
June 30, 2018, a 27% decrease compared to $26.6 million for the six
months ended June 30, 2017.

Loss from Operations — Loss from operations for the six months
ended June 30, 2018 was $23.6 million compared to loss from operations
of $14.6 million for the six months ended June 30, 2017.

Pre-tax Loss — Pre-tax loss for the six months ended June 30,
2018 was $23.2 million compared to pre-tax loss of $14.0 million for the
six months ended June 30, 2017.

Benefit from Income Taxes — Benefit from income taxes for the six
months ended June 30, 2018 was $6.3 million compared to benefit from
income taxes of $13.6 million for the six months ended June 30, 2017.

Net Loss — Net loss for the six months ended June 30, 2018 was
$16.9 million, or $0.89 net loss per diluted share, compared to net loss
of $0.4 million, or $0.02 net loss per diluted share, for the six months
ended June 30, 2017.

Segment Profit (Loss)— Profit from our Medicare segment
was $1.7 million for the six months ended June 30, 2018 compared to loss
of $2.9 million for the six months ended June 30, 2017. Profit from our
Individual, Family and Small Business segment was $2.9 million for the
six months ended June 30, 2018, a 68% decrease compared to profit of
$8.8 million for the six months ended June 30, 2017.

Non-GAAP — Year-to-Date Results

Non-GAAP Operating Loss & Non-GAAP Net Income (Loss)—
Non-GAAP operating loss for the six months ended June 30, 2018 was $12.5
million compared to $9.4 million for the six months ended June 30, 2017.
Non-GAAP net loss for the six months ended June 30, 2018 was $8.6
million, or $0.45 net loss per diluted share, compared to non-GAAP net
income of $2.7 million, or $0.15 net income per diluted share, for the
six months ended June 30, 2017.

Non-GAAP operating loss, non-GAAP net loss and non-GAAP net loss per
diluted share for the six months ended June 30, 2018 exclude $5.7
million of stock-based compensation expense, $2.5 million change in fair
value of earnout liability, $0.1 million acquisition costs, $1.9 million
restructuring charges and $1.0 million of amortization of intangible
assets. Non-GAAP net loss and non-GAAP net loss per diluted share for
the six months ended June 30, 2018 also excludes $3.1 million of benefit
from income tax effect of these adjustments. Non-GAAP operating loss,
non-GAAP net income and non-GAAP net income per diluted share for the
six months ended June 30, 2017 exclude $4.7 million of stock-based
compensation expense and $0.5 million of amortization of intangible
assets. Non-GAAP net income and non-GAAP net income per diluted share
for the six months ended June 30, 2017 also exclude $2.1 million of
benefit from income tax effect of these adjustments.

Adjusted EBITDA— Adjusted EBITDA for the six months ended
June 30, 2018 was $(11.3) million compared to $(7.8) million for the six
months ended June 30, 2017. Adjusted EBITDA is calculated by adding
stock-based compensation, change in fair value of earnout liability
related to our acquisition of GoMedigap, depreciation and amortization
expense, acquisition costs, restructuring charges, amortization of
intangible assets, other income (expense), net and benefit from income
taxes to GAAP net income (loss).

Membership & Submitted Applications

Submitted Applications — Submitted applications for all Medicare
products, which includes Medicare Advantage, Medicare Supplement and
Prescription Drug Plans was 68,785 applications in the six months ended
June 30, 2018, a 10% increase compared to 62,443 applications in the six
months ended June 30, 2017. Submitted applications for individual and
family plan products decreased 68% in the six months ended June 30, 2018
to 8,916 applications compared to 27,436 applications in the six months
ended June 30, 2017.

Cash — Year-to-Date

Cash Flows — Net cash provided by operating activities was $10.4
million for the six months ended June 30, 2018 compared to net cash
provided by operating activities of $7.5 million for the six months
ended June 30, 2017.

2018 Guidance

eHealth is reaffirming guidance for the full year ending December 31,
2018 based on information available as of July 26, 2018. These
expectations are forward-looking statements, and eHealth assumes no
obligation to update these statements. Actual results may be materially
different and are affected by the risk factors and uncertainties
identified in this release and in eHealth’s annual and quarterly filings
with the Securities and Exchange Commission.

Total revenue is expected to be in the range of $217.5 million to
$227.5 million. Revenue from the Medicare segment is expected to be in
the range of $178.5 million to $183.5 million. Revenue from the
Individual, Family and Small Business segment is expected to be in the
range of $39.0 million to $44.0 million.

GAAP net income is expected to be in the range of $1.6 million to $6.6
million.

GAAP net income per share is expected to be in the range of $0.08 to
$0.34 per share.

Non-GAAP net income per diluted share(a) is expected to be
in the range of $0.69 to $0.95 per share.

Adjusted EBITDA(b) is expected to be in the range of $21.9
million to $26.9 million.

Medicare segment profit(c) for the year ending December 31,
2018 is expected to be in the range of $45.5 million to $49.5 million.
Individual, Family and Small Business segment profit(c) for
the year ending December 31, 2018 is expected to be in the range of
$6.0 million to $7.0 million. Corporate(d) shared service
expenses, excluding stock-based compensation and depreciation and
amortization expense, is expected to be approximately $29.5 million.

Adjusted EBITDA per diluted share(e) is expected to be in
the range of $1.13 to $1.39 per share.

(b) Adjusted EBITDA is calculated by
adding stock-based compensation, change in fair value of earnout
liability, depreciation and amortization expense, acquisition costs,
restructuring charges, amortization of intangible assets, other income
(expense) and provision for income taxes to GAAP net income.

(c)
Segment profit is calculated as revenue for the applicable segment
less Marketing and Advertising, Customer Care and Enrollment,
Technology and Content and General and Administrative operating
expenses, excluding stock-based compensation, change in fair value of
earnout liability, depreciation and amortization expense and
amortization of intangible assets, that are directly attributable to
the applicable segment and other indirect Marketing and Advertising,
Customer Care and Enrollment and Technology and Content operating
expenses, excluding stock-based compensation, depreciation and
amortization expense and amortization of intangible assets, allocated
to the applicable segment based on usage.

(d) Corporate
consists of other indirect General and Administrative operating
expenses, excluding stock-based compensation and depreciation and
amortization expense, which are managed in a corporate shared services
environment and, since they are not the responsibility of segment
operating management, are not allocated to the reportable segments.

(e)
Adjusted EBITDA per diluted share is calculated by adding stock-based
compensation, change in fair value of earnout liability, depreciation
and amortization expense, acquisition costs, restructuring charges,
amortization of intangible assets, other income (expense) and
provision for income taxes to GAAP net income per share.

Webcast and Conference Call Information

A Webcast and conference call will be held today, Thursday, July 26,
2018 at 5:00 p.m. Eastern / 2:00 p.m. Pacific Time. The Webcast will be
available live on the Investor Relations section on eHealth’s website at http://ir.ehealthinsurance.com.
Individuals interested in listening to the conference call may do so by
dialing (877) 930-8066 for domestic callers and (253) 336-8042 for
international callers. The participant passcode is 9397667. A telephone
replay will be available two hours following the conclusion of the call
for a period of seven days and can be accessed by dialing (855) 859-2056
for domestic callers and (404) 537-3406 for international callers. The
call ID for the replay is 9397667. The live and archived webcast of the
call will also be available on eHealth's website at http://www.ehealthinsurance.com
under the Investor Relations section.

About eHealth, Inc.

eHealth, Inc. (NASDAQ: EHTH) operates eHealth.com,
a leading private online health insurance exchange where individuals,
families and small businesses can compare health insurance products from
leading insurers side by side and purchase and enroll in coverage
online. eHealth offers thousands of individual, family and small
business health plans underwritten by many of the nation's leading
health insurance companies. eHealth (through its subsidiaries) is
licensed to sell health insurance in all 50 states and the District of
Columbia. eHealth also offers educational resources and powerful online
and pharmacy-based tools to help Medicare beneficiaries navigate
Medicare health insurance options, choose the right plan and enroll in
select plans online through PlanPrescriber.com (www.PlanPrescriber.com),
eHealthMedicare.com (www.eHealthMedicare.com)
and Medicare.com (www.Medicare.com)
and GoMedigap.com (www.GoMedigap.com).

Forward-Looking Statements

This press release contains statements that are forward-looking
statements as defined within the Private Securities Litigation Reform
Act of 1995. These include statements regarding the upcoming Medicare
selling season, Medicare enrollment volume goals, our estimates
regarding constrained lifetime values of commissions per member and
constraints on lifetime value by product category, total memberships,
Medicare memberships, Individual and Family plan memberships, ancillary
and small business memberships, and our guidance for the full year
ending December 31, 2018, including our guidance for total revenue,
revenue from the Medicare segment, revenue from the Individual, Family
and Small Business segment, GAAP net income, Adjusted EBITDA, profit
from the Medicare segment, profit from the Individual, Family and Small
Business segment, Corporate shared service expense, GAAP net income per
share, Non-GAAP net income per share and Adjusted EBITDA per share

These forward-looking statements are inherently subject to various risks
and uncertainties that could cause actual results to differ materially
from the statements made. In particular, we are required by the new
revenue recognition standard to make numerous assumptions that are based
upon historical trends and management judgment. These assumptions may
change over time and have a material impact on our revenue recognition,
guidance, and results of operations. Please review the assumptions
stated in this section carefully as well as the disclosures about our
implementation of the new revenue recognition standard in our Form 10-Q
for the fiscal quarter ended March 31, 2018.

Our forward-looking statements are inherently subject to other risks and
uncertainties that could cause actual results to differ materially from
the statements made, including risks associated with the impact of
healthcare reform; our ability to retain existing members and enroll a
large number of new members during the annual healthcare reform open
enrollment period and Medicare annual enrollment period; the impact of
annual enrollment period for the purchase of individual and family
health insurance and its timing on our recognition of revenue; our
ability to sell qualified health insurance plans to subsidy-eligible
individuals and to enroll subsidy eligible individuals through
government-run health insurance exchanges; changes in laws and
regulations, including in connection with healthcare reform; our ability
to successfully make and integrate acquisitions; our health insurance
benefit packages' ability to meet individual customer's specific health
insurance and price needs; our ability to comply with CMS guidance and
impact on conversion rates as a result of the federal exchange changes
to enrollment; competition, including competition from government-run
health insurance exchanges; seasonality of our business and the
fluctuation of our operating results; our ability to retain existing
members and limit member turnover; changes in consumer behaviors and
their selection of individual and family health insurance products,
including the selection of products for which we receive lower
commissions; a reduction of product offerings among carriers and the
resulting impact on our commission revenue; carriers exiting the market
of selling individual and family health insurance and the resulting
impact on our supply and commission revenue; our ability to execute on
our growth strategy in the Medicare and small business health insurance
markets; the impact of increased health insurance costs on demand; our
ability to timely receive and accurately predict the amount of
commission payments from health insurance carriers; timing of commission
payments from health insurance carriers; medical loss ratio
requirements; delays in our receipt of items required to recognize
Medicare revenue; changes in member conversion rates; our ability to
accurately estimate membership; our relationships with health insurance
carriers; customer concentration and consolidation of the health
insurance industry; our success in marketing and selling health
insurance plans and our unit cost of acquisition; our ability to hire,
train and retain licensed health insurance agents and other employees;
the need for health insurance carrier and regulatory approvals in
connection with the marketing of Medicare-related insurance products;
costs of acquiring new members; scalability of the Medicare business;
lack of membership growth and retention rates; consumers satisfaction of
our service; changes in competitive landscape; our ability to attract
and to convert online visitors into paying members; changes in products
offered on our ecommerce platform; changes and reductions in commission
rates; maintaining and enhancing our brand identity; our ability to
derive desired benefits from investments in our business, including
membership growth initiatives; dependence on acceptance of the Internet
as a marketplace for the purchase and sale of health insurance; reliance
on marketing partners; the impact of our digital marketing efforts;
timing of receipt and accuracy of commission reports; payment practices
of health insurance carriers; dependence on our operations in China;
compliance with insurance and other laws and regulations; exposure to
security risks; and the performance, reliability and availability of our
ecommerce platform and underlying network infrastructure. Other factors
that could cause operating, financial and other results to differ are
described in eHealth’s most recent Quarterly Report on Form 10-Q or
Annual Report on Form 10-K filed with the Securities and Exchange
Commission and available on the investor relations page of eHealth’s
website at http://www.ehealthinsurance.com
and on the Securities and Exchange Commission’s website at www.sec.gov.
eHealth does not undertake any obligation to update any forward-looking
statement to conform the statement to actual results or changes in
expectations.

Adjusted EBITDA is calculated by adding stock-based compensation,
change in fair value of earnout liability, depreciation and
amortization expense, acquisition costs, restructuring charges,
amortization of intangible assets, other income (expense) and
provision (benefit) for income taxes to GAAP net income (loss).

eHealth believes that the presentation of these non-GAAP financial
measures provide important supplemental information to management and
investors regarding financial and business trends relating to eHealth’s
financial condition and results of operations. Management believes that
the use of these non-GAAP financial measures provides consistency and
comparability with eHealth’s past financial reports. Management also
believes that the items described above provides an additional measure
of eHealth’s operating results and facilitates comparisons of eHealth’s
core operating performance against prior periods and business model
objectives. This information is provided to investors in order to
facilitate additional analyses of past, present and future operating
performance and as a supplemental means to evaluate eHealth’s ongoing
operations. eHealth believes that these non-GAAP financial measures are
useful to investors in their assessment of eHealth’s operating
performance.

Non-GAAP operating income (loss), non-GAAP operating margins, Adjusted
EBITDA, non-GAAP net income (loss), non-GAAP net income (loss) per
diluted share and Adjusted EBITDA per share are not calculated in
accordance with GAAP, and should be considered supplemental to, and not
as a substitute for, or superior to, financial measures calculated in
accordance with GAAP. Non-GAAP financial measures used in this press
release have limitations in that they do not reflect all of the revenue
and costs associated with the operations of eHealth’s business and do
not reflect income tax as determined in accordance with GAAP. As a
result, you should not consider these measures in isolation or as a
substitute for analysis of eHealth’s results as reported under GAAP.
eHealth expects to continue to incur the stock-based compensation costs
and purchased intangible asset amortization costs described above, and
exclusion of these costs, and their related income tax benefits, from
non-GAAP financial measures should not be construed as an inference that
these costs are unusual or infrequent. eHealth compensates for these
limitations by prominently disclosing GAAP operating income (loss), GAAP
operating margins, GAAP net income (loss) and GAAP net income (loss) per
diluted share and providing investors with reconciliations from
eHealth’s GAAP operating results to the non-GAAP financial measures for
the relevant periods.

The accompanying tables provide more details on the GAAP financial
measures that are most directly comparable to the non-GAAP financial
measures described above and the related reconciliations between these
financial measures.

We evaluate our business performance and manage our operations as two
distinct reporting segments:

Medicare and

Individual, Family and Small Business.

(1)

The Medicare segment consists primarily of amounts earned from our
sale of Medicare-related health insurance plans, including Medicare
Advantage, Medicare Supplement and Medicare Part D prescription drug
plans, and to a lesser extent, ancillary products sold to our
Medicare-eligible customers, including but not limited to, dental,
vision, and life, our advertising program that allows
Medicare-related carriers to purchase advertising on a separate
website developed, hosted and maintained by us and our delivery and
sale to third parties of Medicare-related health insurance leads
generated by our ecommerce platforms and our marketing activities.

(2)

The Individual, Family and Small Business segment consists primarily
of amounts earned from our sale of individual and family and small
business health insurance plans and ancillary products sold to our
non-Medicare-eligible customers, including but not limited to,
dental, vision, life and short term insurance plans. To a lesser
extent, the Individual, Family and Small Business segment consists
of amounts earned from our online sponsorship program that allows
carriers to purchase advertising space in specific markets in a
sponsorship area on our website, our licensing to third parties the
use of our health insurance ecommerce technology and our delivery
and sale to third parties of individual and family health insurance
leads generated by our ecommerce platforms and our marketing
activities.

(3)

Segment profit (loss) is calculated as revenue for the applicable
segment less Marketing and Advertising, Customer Care and
Enrollment, Technology and Content and General and Administrative
operating expenses, excluding stock-based compensation, depreciation
and amortization expense, restructuring benefit and amortization of
intangible assets, that are directly attributable to the applicable
segment and other indirect Marketing and Advertising, Customer Care
and Enrollment and Technology and Content operating expenses,
excluding stock-based compensation, depreciation and amortization
expense and amortization of intangible assets, allocated to the
applicable segment based on usage.

(4)

Corporate consists of other indirect General and Administrative
operating expenses, excluding stock-based compensation, depreciation
and amortization expense, which are managed in a corporate shared
services environment and, because they are not the responsibility of
segment operating management, are not allocated to the reportable
segments.

Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted
share and Adjusted EBITDA exclude the change in fair value of
earnout liability related to the acquisition of GoMedigap, which
was completed in January 2018..

(3)

Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted
share and Adjusted EBITDA exclude costs related to the acquisition
of GoMedigap, which was completed in January 2018.

Non-GAAP net income (loss), Non-GAAP net income (loss) per share and
Adjusted EBITDA exclude benefit from income taxes.

(7)

Adjusted EBITDA excludes depreciation and amortization.

(8)

Adjusted EBITDA excludes other income (expense), net.

EHEALTH, INC.

SUMMARY OF SELECTED METRICS

COMMISSION REVENUE BY PRODUCT

(In thousands, unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2017

2018

PercentChange

2017

2018

PercentChange

Medicare

Medicare Advantage

$

18,677

$

17,738

(5)%

$

37,882

$

39,673

5 %

Medicare Supplement

2,886

5,355

86 %

6,800

10,947

61 %

Medicare Part D

1,203

715

(41)%

2,581

1,874

(27)%

Total Medicare

22,766

23,808

5 %

47,263

52,494

11 %

Individual and Family (1)

Non-Qualified Health Plans

1,988

1,069

(46)%

5,761

2,510

(56)%

Qualified Health Plans

2,634

1,675

(36)%

5,766

3,837

(33)%

Total Individual and Family

4,622

2,744

(41)%

11,527

6,347

(45)%

Ancillary

Short-term

1,029

1,293

26 %

2,875

2,543

(12)%

Dental

1,003

147

(85)%

2,850

1,366

(52)%

Vision

282

391

39 %

852

731

(14)%

Other

762

(118

)

(115)%

1,527

2,653

74%

Total Ancillary

3,076

1,713

(44)%

8,104

7,293

(10)%

Small Business

1,532

1,772

16 %

3,456

4,131

20 %

Commission Bonus

455

609

34 %

938

1,088

16 %

Total Commission Revenue

$

32,451

$

30,646

(6)%

$

71,288

$

71,353

— %

(1)

We define our Individual and Family Plan offerings as major medical
individual and family health insurance plans, which does not include
Medicare-related, small business or ancillary plans. Individual and
family health insurance plans include both Qualified and
Non-Qualified plans. Qualified health plans are individual and
family health insurance plans that meet the requirements of the
Affordable Care Act and are offered through the government-run
health insurance exchange in the relevant jurisdiction.
Non-Qualified health plans are individual and family health
insurance plans that meet the requirements of the Affordable Care
Act and are not offered through the exchange in the relevant
jurisdiction. Individuals who purchase Non-Qualified health plans
cannot receive a subsidy in connection with the purchase of those
plans.

EHEALTH, INC.

SUMMARY OF SELECTED METRICS

SUBMITTED APPLICATIONS

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2017

2018

PercentChange

2017

2018

PercentChange

Medicare (1)

Medicare Advantage

23,071

23,149

— %

44,870

47,945

7 %

Medicare Supplement

4,157

6,868

65 %

8,697

13,256

52 %

Medicare Part D

3,938

3,739

(5)%

8,876

7,584

(15)%

Total Medicare

31,166

33,756

8 %

62,443

68,785

10 %

Individual and Family (2)

Non-Qualified Health Plans

4,098

1,309

(68)%

18,362

5,195

(72)%

Qualified Health Plans

1,327

1,037

(22)%

9,074

3,721

(59)%

Total Individual and Family

5,425

2,346

(57)%

27,436

8,916

(68)%

Ancillary (3)

Short-term

22,414

25,779

15 %

46,699

45,274

(3)%

Dental

16,734

9,324

(44)%

40,112

22,317

(44)%

Vision

6,204

4,209

(32)%

16,061

9,793

(39)%

Other

6,796

8,777

29 %

11,495

22,118

92 %

Total Ancillary

52,148

48,089

(8)%

114,367

99,502

(13)%

Small Business (4)

1,280

1,672

31 %

2,442

3,392

39 %

Total Submitted Applications

90,019

85,863

(5)%

206,688

180,595

(13)%

Submitted Applications

Applications are counted as submitted when the applicant completes the
application and either clicks the submit button on our website or
provides verbal authorization to submit the application. The applicant
may have additional actions to take before the application will be
reviewed by the insurance carrier, such as providing additional
information. In addition, an applicant may submit more than one
application.

Major medical Individual and Family plan ("IFP") health insurance
applications submitted on our website during the period. An
applicant may submit more than one application. We define our IFP
offerings as major medical individual and family health insurance
plans, which does not include Medicare-related, small business or
ancillary plans.

Applications for small business health insurance applications are
counted as submitted when the applicant completes the application,
the employees complete their applications, the applicant submits the
application to us and we submit the application to the carrier.

EHEALTH, INC.

SUMMARY OF SELECTED METRICS

APPROVED MEMBERS

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2017

2018

PercentChange

2017

2018

PercentChange

Medicare

Medicare Advantage

21,893

20,818

(5)%

43,358

45,438

5 %

Medicare Supplement

3,179

5,267

66 %

7,378

10,683

45 %

Medicare Part D

4,163

3,417

(18)%

9,295

7,719

(17)%

Total Medicare

29,235

29,502

1 %

60,031

63,840

6 %

Individual and Family

Non-Qualified Health Plans

4,161

1,275

(69)%

28,960

10,488

(64)%

Qualified Health Plans

3,486

1,214

(65)%

20,090

15,900

(21)%

Total Individual and Family

7,647

2,489

(67)%

49,050

26,388

(46)%

Ancillary

Short-term

18,470

25,964

41 %

39,721

46,960

18 %

Dental

15,679

9,302

(41)%

40,413

23,464

(42)%

Vision

6,593

4,444

(33)%

17,346

11,039

(36)%

Other

5,604

7,485

34 %

10,632

16,731

57%

Total Ancillaries

46,346

47,195

2 %

108,112

98,194

(9)%

Small Business

2,455

3,464

41 %

5,939

8,758

47 %

Total Approved Members

85,683

82,650

(4)%

223,132

197,180

(12)%

Approved Members

Approved Members represents the number of individuals on submitted
applications that were approved by the relevant insurance carrier for
the identified product during the relevant period. Approved members may
not pay for their plan and become paying members.

EHEALTH, INC.

SUMMARY OF SELECTED METRICS

ESTIMATED MEMBERSHIP

(Unaudited)

Three Months Ended

June 30,

2017

2018

PercentChange

Medicare (1)

Medicare Advantage

185,819

226,048

22 %

Medicare Supplement

26,533

61,316

131 %

Medicare Part D

88,021

106,573

21 %

Total Medicare

300,373

393,937

31 %

Individual and Family (2)

244,897

168,278

(31)%

Ancillary (3)

Short-term

23,555

17,008

(28)%

Dental

177,818

150,823

(15)%

Vision

84,626

75,696

(11)%

Other

23,361

34,964

50 %

Total Ancillaries

309,360

278,491

(10)%

Small Business (4)

31,172

37,010

19 %

Total Estimated Membership

885,802

877,716

(1)%

Estimated Membership

Estimated membership represents the estimated number of members active
as of the date indicated based on the number of members for whom we have
received or applied a commission payment during the month of estimation.

(1)

For Medicare-related health insurance plans, we take the sum of (i)
the number of members for whom we have received or applied a
commission payment for a month that is up to two months prior to the
date of estimation (after reducing that number using historical
experience for assumed member cancellations over the period being
estimated); and (ii) the number of approved members over that period
(after reducing that number using historical experience for an
assumed number of members who do not accept their approved policy
from the same month of the previous year and for estimated member
cancellations through the date of the estimate). To the extent we
determine we have received substantially all of the commission
payments related to a given month during the period being estimated,
we will take the number of members for whom we have received or
applied a commission payment during the month of estimation.
Estimated number of members active on Medicare-related health
insurance as of the date indicated based on the number of members
for whom we have received or applied a commission payment during the
month of estimation.

(2)

To estimate the number of members on Individual and Family health
insurance plans, we take the sum of (i) the number of IFP members
for whom we have received or applied a commission payment for a
month that is up to six months prior to the date of estimation after
reducing that number using historical experience for assumed member
cancellations over the period being estimated; and (ii) the number
of approved members over that period (after reducing that number by
the percentage of members who do not accept their approved policy
from the same month of the previous year for estimated member
cancellations through the date of the estimate). To the extent we
determine we have received substantially all of the commission
payments related to a given month during the period being estimated,
we will take the number of members for whom we have received or
applied a commission payment during the month of estimation. For IFP
health insurance plans, a member who purchases and is active on
multiple standalone insurance plans will be counted as a member more
than once. For example, a member who is active on both an individual
and family health insurance plan and a standalone dental plan will
be counted as two continuing members.

For ancillary health insurance plans (such as short-term, dental and
vision insurance), we take the sum of (i) the number of members for
whom we have received or applied a commission payment for a month
that is up to three months prior to the date of estimation (after
reducing that number using historical experience for assumed member
cancellations over the period being estimated); and (ii) the number
of approved members over that period (after reducing that number
using historical experience for an assumed number of members who do
not accept their approved policy from the same month of the previous
year and for estimated member cancellations through the date of the
estimate). To the extent we determine we have received substantially
all of the commission payments related to a given month during the
period being estimated, we will take the number of members for whom
we have received or applied a commission payment during the month of
estimation. The one to three-month period varies by insurance
product and is largely dependent upon the timeliness of commission
payments and related reporting from the related carriers.

(4)

For small business health insurance plans, we estimate the number of
members using the number of initial members at the time the group is
approved, and we update this number for changes in membership if
such changes are reported to us by the group or carrier in the
period it is reported. However, groups generally notify the carrier
directly of policy cancellations and increases or decreases in group
size without informing us. Health insurance carriers often do not
communicate policy cancellation information or group size changes to
us. We often are made aware of policy cancellations and group size
changes at the time of annual renewal and update our membership
statistics accordingly in the period they are reported.

Health insurance carrier’s bill and collect insurance premiums paid by
our members. The carriers do not report to us the number of members that
we have as of a given date. The majority of our members who terminate
their policies do so by discontinuing their premium payments to the
carrier and do not inform us of the cancellation. Also, some of our
members pay their premiums less frequently than monthly. Given the
number of months required to observe non-payment of commissions in order
to confirm cancellations, we estimate the number of members who are
active on insurance policies as of a specified date.

After we have estimated membership for a period, we may receive
information from health insurance carriers that would have impacted the
estimate if we had received the information prior to the date of
estimation. We may receive commission payments or other information that
indicates that a member who was not included in our estimates for a
prior period was in fact an active member at that time, or that a member
who was included in our estimates was in fact not an active member of
ours. For instance, we reconcile information carriers provide to us and
may determine that we were not historically paid commissions owed to us,
which would cause us to have underestimated membership. Conversely,
carriers may require us to return commission payments paid in a prior
period due to policy cancellations for members we previously estimated
as being active. We do not update our estimated membership numbers
reported in previous periods. Instead, we reflect updated information
regarding our historical membership in the membership estimate for the
current period. As a result of the delay in our receipt of information
from insurance carriers, actual trends in our membership are most
discernible over periods longer than from one quarter to the next. As a
result of the delay we experience in receiving information about our
membership, it is difficult for us to determine with any certainty the
impact of current conditions on our membership retention. Health care
reform and its impacts as well as other factors could cause the
assumptions and estimates that we make in connection with estimating our
membership to be inaccurate, which would cause our membership estimates
to be inaccurate.

EHEALTH, INC.

SUMMARY OF SELECTED METRICS

CONSTRAINED LIFETIME VALUE OF

COMMISSIONS PER APPROVED MEMBER

(Unaudited)

Three Months Ended

June 30,

2017

2018

PercentageChange

Medicare

Medicare Advantage (1)

$

851

$

851

— %

Medicare Supplement (1)

$

908

$

1,026

13 %

Medicare Part D (1)

$

289

$

294

2 %

Individual and Family

Non-Qualified Health Plans (1)

$

129

$

125

(3)%

Qualified Health Plans (1)

$

121

$

100

(17)%

Ancillary

Short-term (1)

$

56

$

57

2 %

Dental (1)

$

58

$

64

10 %

Vision (1)

$

43

$

46

7 %

Small Business (2)

$

163

$

164

1 %

Constrained Lifetime Value of Commissions Per
Approved Member

(1)

Constrained lifetime value (“LTV”) of commissions per approved
member represents commissions estimated to be collected over the
estimated life of an approved member’s policy after applying
constraints in accordance with our revenue recognition policy. The
estimate is driven by multiple factors, including but not limited
to, contracted commission rates, carrier mix, expected policy churn
and applied constraints. These factors may result in varying values
from period to period.

(2)

For Small Business, the amount represents the estimated commissions
we expect to collect from the plan over the following 12-months. The
estimate is driven by multiple factors, including but not limited
to, contracted commission rates, carrier mix, expected policy churn
and applied constraints. These factors may result in varying values
from period to period.

EHEALTH, INC.

SUMMARY OF SELECTED METRICS

CONSTRAINTS ON LIFETIME VALUE

OF COMMISSIONS PER APPROVED MEMBER

(Unaudited)

Three Months Ended

June 30,

2017

2018

Medicare

Medicare Advantage

7

%

7

%

Medicare Supplement

5

%

5

%

Medicare Part D

5

%

5

%

Individual and Family

Non-Qualified Health Plans

15

%

15

%

Qualified Health Plans

20

%

20

%

Ancillary

10

%

10

%

Small Business

—

%

—

%

Constraints on Lifetime Value of Commissions
Per Approved Member

Constraints are applied to derive the constrained lifetime value ("LTV")
of commissions per approved member for revenue recognition in accordance
with our revenue recognition policy. The constraints are applied to help
ensure that commissions estimated to be collected over the estimated
life of an approved member’s plan are recognized as revenue only to the
extent that is it probable that a significant reversal in the amount of
cumulative revenue recognized will not occur when the uncertainty
associated with future commissions receivable from the plan is
subsequently resolved. We evaluate constraints on an annual basis for
factors affecting our estimate of LTV of commissions per approved member
and apply management judgment to determine the constraints based on
current trends impacting our business.

Individual and Family Plan ("IFP") variable marketing cost per
approved IFP-equivalent member (2)

$

25

$

48

92 %

Customer care and enrollment ("CC&E") expense per approved member

Medicare CC&E expense per approved MA-equivalent member (3)

$

358

$

410

15 %

IFP CC&E expense per approved IFP-equivalent member (4)

$

131

$

106

(19)%

Expense Metrics Per Approved Member

(1)

Variable marketing cost per approved MA-equivalent member represents
direct costs incurred in member acquisition for Medicare Advantage,
Medicare Supplement and Medicare Part D plans from our direct,
marketing partner and online advertising channels divided by
MA-equivalent approved members in a given period. MA-equivalent
members is a derived metric and is equal to the sum of Medicare Part
D approved members divided by 4, the number of Medicare Advantage
approved members and the number of Medicare Supplement approved
members in the given period.

(2)

Variable marketing cost per approved IFP-equivalent member
represents direct costs incurred in member acquisition for IFP plans
from our direct, marketing partner and online advertising channels
divided by IFP-equivalent approved members in a given period.
IFP-equivalent approved members is a derived metric and is equal to
the sum of the number of short-term approved members divided by 3
and the IFP approved members in the given period.

(3)

Medicare CC&E expense per approved MA-equivalent member is equal to
the CC&E expense of our Medicare business included in our operating
costs and reported in our condensed consolidated statements of
operations divided by MA-equivalent approved members in a given
period. MA-equivalent approved members is a derived metric and is
equal to the sum of Medicare Part D approved members divided by 4,
the number of Medicare Advantage approved members and the number of
Medicare Supplement approved members in the given period.

(4)

IFP CC&E expense per approved IFP-equivalent member is equal to the
CC&E expense of our IFP business included in our operating costs and
reported in our condensed consolidated statement of operations
divided by IFP-equivalent approved members in a given period.
IFP-equivalent approved members is a derived metric and is equal to
the sum of the number of short-term approved members divided by 3
and the IFP approved members in the given period.

EHEALTH, INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GUIDANCE

(In millions, except per share amounts, unaudited)

Year EndingDecember 31,2018

Adjusted EBITDA:

GAAP net income

$1.6 - $6.6

Stock-based compensation expense

11.9

Depreciation and amortization

3.2

Amortization of intangible assets

2.1

Restructuring charges

2.1

Acquisition costs

0.1

Other income (expense), net

(0.7)

Provision for income taxes

1.6

Adjusted EBITDA (1)

$21.9 - $26.9

Adjusted EBITDA Per Diluted Share:

GAAP net income per diluted share

$0.08 - $0.34

Stock-based compensation expense

0.61

Depreciation and amortization

0.17

Amortization of intangible assets

0.11

Restructuring charges

0.11

Acquisition costs

0.01

Other income (expense), net

(0.04)

Provision for income taxes

0.08

Adjusted EBITDA per diluted share (2)

$1.13 - $1.39

Non-GAAP Net Income Per Diluted Share:

GAAP net income per diluted share

$0.08 - $0.34

Stock-based compensation expense

0.61

Amortization of intangible assets

0.11

Restructuring charges

0.11

Acquisition costs

0.01

Provision for income taxes

(0.23)

Non-GAAP net income per diluted share (3)

$0.69 - $0.95

Explanation of Adjustments

(1)

Adjusted EBITDA is calculated by adding stock-based compensation,
depreciation and amortization expense, amortization of intangible
assets, restructuring charges, acquisition costs, other income
(expense) and provision for income taxes to GAAP net income.

(2)

Adjusted EBITDA per diluted share is calculated by adding
stock-based compensation, depreciation and amortization expense,
amortization of intangible assets, restructuring charges,
acquisition costs, other income (expense) and provision for income
taxes to GAAP net income per share.

(3)

Non-GAAP net income per share is calculated by excluding stock-based
compensation expense, intangible asset amortization expense,
restructuring charges, acquisition costs and provision for income
taxes to GAAP net income per share.